Reserve Bank of Fiji governor Ariff Ali recently emphasized that businesses will lean towards local labor rather than importing workers, provided local options are available. This statement came during a “State of the Economy” breakfast event in Suva. Ali highlighted the financial burden associated with importing labor, which includes flight costs, accommodation, and higher salaries for foreign workers. He noted that labor productivity and uncertainty in labor supply often drive businesses to consider imported workers.
The construction industry, in particular, has been significantly reliant on foreign labor, according to Ali, who mentioned discussions with major contractors indicating that many projects could not proceed without imported staff. He urged collaboration between the business sector and the government to ensure that capital projects are not hindered due to labor shortages.
Eldon Eastgate, president of the Fiji Commerce and Employers Federation, also spoke about ongoing labor constraints affecting productivity. Eastgate pointed to the loss of local labor and the challenges in backfilling these roles, citing low birth rates as a contributing factor. He referred to Singapore’s approach, where a substantial portion of the workforce consists of foreign nationals, advocating for supportive policies to attract foreign labor to Fiji.
In a broader context, Ali observed a shift in workforce dynamics, noting the increasing mobility of today’s workers who often change jobs via text or messaging apps. He stressed the need for a balanced approach between government regulations and private sector needs regarding labor.
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